New York, NY, United States (AHN) – New home sales jumped in November from October. But, 2011 is still on track to end the year as the worst year for home sales in history.
On Friday, the Commerce Department said new home sales rose 1.6 percent last month to a seasonally adjusted annual rate of 315,000. The scant rise is less than half the 700,000 new homes that economists say should be sold to sustain a healthy housing market.
The number is also below the 323,000 homes sold in 2010, the worst year for sales on records dating back to 1963.
While new home sales account for just a fraction of the housing market, they do have a big impact on the economy. According to the National Association of Home Builders, each new home built creates about three jobs for a year, and generates roughly $90,000 in taxes.
Despite historic low mortgage rates, the housing markets remains depressed and is a long way from fully recovering.
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